The Gory Details on TAL International Group's Double Miss

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TAL International Group (NYS: TAL) reported earnings on Oct. 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), TAL International Group missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew significantly.


Gross margins expanded, operating margins shrank, net margins grew.

Revenue details
TAL International Group reported revenue of $149.0 million. The nine analysts polled by S&P Capital IQ expected revenue of $152.8 million on the same basis. GAAP reported sales were 8.2% higher than the prior-year quarter's $137.8 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.95. The nine earnings estimates compiled by S&P Capital IQ anticipated $1.03 per share. GAAP EPS of $0.93 for Q3 were 72% higher than the prior-year quarter's $0.54 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 88.3%, 210 basis points better than the prior-year quarter. Operating margin was 46.1%, 1,250 basis points worse than the prior-year quarter. Net margin was 20.9%, 780 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $154.4 million. On the bottom line, the average EPS estimate is $1.06.

Next year's average estimate for revenue is $595.2 million. The average EPS estimate is $4.01.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on TAL International Group is outperform, with an average price target of $41.63.

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The article The Gory Details on TAL International Group's Double Miss originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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